File #42714 | Phoenix Operating LLC | Divide County
API
3302301768
Target Formation
Bakken/Three Forks Petroleum System
Permit Explained
Yes
Permit Cycle Assessment
The permit approval dated 2026-02-13 is explained by Commission Order No. 34436, which conditions horizontal drilling within the 1920-acre spacing unit (Sections 3, 10, 15) with specific setback requirements. The 150-foot north/south setback is justified by the operator's commitment to a production liner with wet shoe and fracout capability, a non-routine completion design documented in the Proposed Drilling Plan. The permit incorporates inter-operator notification compliance (Order 31973 waiver letter dated 2026-01-12), confirming that adjacent spacing unit operator requirements are satisfied. Standard conditions (closed mud system, remote shutoff devices, perimeter berm, conductor restrictions, groundwater protection measures) apply without waiver. No evidence of regulatory objections, public comment periods triggered, or extraordinary environmental/safety concerns requiring waiver or special stipulation exists in the file.
Permit Cycle Signals (4)
Commission Order No. 34436 conditional approval for horizontal drilling with 150' north/south setbacks and 1220' east/west setbacks within 1920-acre spacing unit (Sections 3, 10, 15, T160N, R98W) (2026-02-13)
Order 34436 is the regulatory anchor conditioning well geometry and setback requirements. The 150' north/south setback is predicated on production liner with wet shoe and fracout capability, a specific completion design constraint.
Production liner cemented in lateral with wet shoe and ability to frac out shoe as basis for 150' north/south setback approval (2026-02-13)
Non-routine completion design (wet shoe with fracout capability) directly justifies the permit's setback tolerance. Without this technical commitment, tighter setbacks would apply.
Backbuild order waiver letter dated 2026-01-12 from Phoenix Energy (affiliate operator) confirming adjacent spacing unit operator notification requirement satisfied; wells enter Bakken Petroleum System outside target spacing unit per Order 31973 (2026-01-12)
Demonstrates operator compliance with Order 31973 inter-operator notification requirement for cross-unit drilling. Absence of third-party objection supports permit approval timing.
Skabo-Bakken Pool definition stipulated in permit (top 50 feet above Bakken Formation top to 100 feet below Three Forks Formation top) per permit approval conditions (2026-02-13)
Pool definition delimits completion interval and regulatory framework. This is contemporaneous with permit approval, not pre-existing.
Historical Non-Routine Signals (5)
Off-spacing drilling from pad located in NENW Section 22 to enter Bakken target across multiple sections (target in Section 3); directional geometry designed to traverse Sections 10, 15, and 22 (Unknown)
Off-spacing geometry creates persistent operational constraint requiring compliance with Order 31973 notification obligations and accurate anti-collision drilling supervision. Impacts future sidetrack procedures and regulatory approvals for any well modifications.
Affidavit of Surface Damage Agreement dated 2026-02-12 confirms landowner (Walen, M David Family Trust) awareness of multi-well pad drilling in off-spacing configuration (2026-02-12)
Landowner agreement is legally binding and survives permit term. Any abandonment, reclamation, or access disputes reference this agreement. Operator must maintain surface use compliance throughout well lifecycle.
Filter sock disposal requirement (N.D.A.C. 43-02-03-19.2) effective 2014-06-01: leak-proof, covered, placard container mandatory from spud through flowback (2014-06-01)
Statutory waste management obligation persists throughout operational and abandonment phases. Non-compliance triggers enforcement action independent of drilling permit status. Operator must maintain documented disposal records.
Closed loop cuttings system with disposal at Smoky Butte Environmental LLC (Fortuna, ND) specified in Proposed Mud Program (Unknown)
Operational commitment to licensed disposal facility affects rig logistics and compliance documentation. Changes to disposal contractor require NDIC notification via Sundry Notice.
Diesel-based compound prohibition in hydraulic stimulation (specific CAS Registry Numbers 68334-30-5, 68476-34-6, 68476-30-2, 68476-31-3, 8008-20-6) per Proposed Work section (Unknown)
Chemical constraint on completion fluids is binding through well lifecycle. Any deviation from approved stimulation design requires prior NDIC approval per permit page 9 operator understanding (changes to completion technique within Bakken-Three Forks system).
Historical Operator Profile
Total Wells:N/A
Active Wells:N/A
Notable Patterns:None identified
Confidence Assessment
Level: High Rationale: Well file contains complete permit documentation (File 42714, approval date 2026-02-13 by Petroleum Engineer Nathaniel Erbele), Commission Order No. 34436 cited as direct legal basis, technical justification (wet shoe design) documented in Proposed Drilling Plan submitted 2026-01-09, and pre-permit regulatory compliance letter (backbuild waiver) dated 2026-01-12. No OCR errors affect critical permit language, dates, or regulatory citations. Operator assertions and acknowledgments signed/submitted by qualified personnel (Jakob Wheeler, Regulatory Specialist). Historical signals grounded in contemporaneous documents (surface agreement 2026-02-12, regulatory guidance letter May 2025, design documents). No conflicting or missing dates within permit-cycle signals.